Pandora listener growth has slowed and the company didn’t turn a profit in the second quarter, but the online radio company was able to improve where it mattered most: revenue and local advertising.
Second-quarter revenue was $285.6 million, a 30-percent increase year over year, while net loss was $16.1 million, slightly worse than the $11.7-million loss in the prior-year period.
Listener growth was low at 3.9 percent. Pandora had 79.4 million active listeners at the end of June, a gain of 200,000 since March and 3 million since June 2014. Growth in listener hours was better at 5.2 percent, representing an improvement to 5.3 billion from 5.04 billion.
Royalties were slightly less of a financial burden. Royalties accounted for 45.6 percent of revenue in the second quarter, an improvement from 50.9 percent a year earlier. Through the first six months of 2015, royalties as a percent of revenue improved to 49.6 percent from 53.2 percent a year earlier. These improvements show Pandora’s business model allows for margin improvement as revenue grows.